Kmart, Target warn on consumer

Via WES:


  1. kannigetMEMBER

    So in a really tight market with no real room to move on discretionary spending for the average retail shopper that fact that the “Growth” in sales was down is a problem. Its not like they said overall sales were down, just that they didnt grow as much as the previous year. I would be happy with maintaining a steady state in this kind of environment.

    • Looks like Target’s sales growth was actually negative – ie their sales have fallen.

      WES down 4.3%

    • The issue is that “this environment” so late in the market cycle should be frothy and booming.
      In that regards its only able to to grow sales 0-1% over half the year when people still have jobs and some wages growth.
      These are meant to be the good times. What happens when the cycle rolls over.

  2. Jumping jack flash

    Any moment now those rate cuts will kick in.

    Booming consumption and rocketing wages… any moment now…. just…. a bit… longer….

    Watch the debt. That will signal what will happen. Debt is kaput so there will be no growth.

    The economy has been transformed to rely on debt growth.
    The banks like it that way, it means they can control the entire economy with the flick of interest rates. Well, they think they can.

    The government likes it that way, it means they don’t need to think about the economy anymore because that’s all taken care of by the private banks – basically the government has privatised the economic management of the nation. The “regulators” are just a token measure, they don’t actually do anything, nor can they.

    Not needing to worry about the annoying nuances of the economy – which nobody really understands anyway, so best let the banks take care of all that – leaves them with more time to get on with the important issues… like… hey, wait a minute, just what DOES the government do anymore?

    • Don’t worry the Adults are in charge and everything will be fine. Reading this article the morning I got the impression that this is what they are trying to tell us.

      QE was and wasn’t success apparently, there is no downsides. We can fix thing with QE. It’s not like it’s caused greater inequality or created another debt bubble 10 years later.

      • Jumping jack flash

        Pff.. QE. As if the banks aren’t healthy enough! They’re making billions.

        QE wont do anything for the economy, its basically another rate cut, but it allows the banks to still make their money.

        They miss the point entirely because they’re bankers working for banks. The banks are in charge so they look after themselves and their ilk first and foremost – banks are the vital and important managers of the economy (now).

        The actual people who live in and operate in the economy – who are the economy, cannot afford for the banks to be in charge anymore.

      • If we got the helicoper type I’d pay off debt. I’m saving, not spending, and paying down debt that’s it. And if I need new clothes every few years I’ll go to KMart for the $5 Tee shirts or surprisingly at my local charity shop. It’s amazing what people throw out. We’re all lost weight and culled our clothes and while at the charity shop I picked up three new shirts for $20…amazing.

      • Iron HorseMEMBER

        Actually OP Shops seem to the one bright light on the horizon for ‘retail’ landlords as they are proliferating. (in SA anyway!)
        Their only expenses are rent and energy consumables as their stock is free and labour is voluntary. Also, they aim to keep turning their stock over as new inventory is always coming in so there is usually something ‘fresh’ to see..
        On a side note we spent the long weekend up the river and my wife went into an OP Shop and came back with a 3/4 length navy blue, double breasted woollen jacket for me. When I asked her how much she said that it was in their free stuff. WTF, there was nothing wrong with it, no holes or rips, all buttons where they should be. A dry clean and it will probably see me out…!

  3. If you are an Indian guy hotbunking with 10 others in a 2 bedroom apartment – what are you going to buy at Kmart?

    We have very low quality bodies coming in. Set a minimum of 51% female migrants from any country on any visa and we will start to see more shopping.